Workmen’s compensation Act,

1923
 The Workmen’s Compensation Act, aims to
provide workmen and/or their dependents
some relief in case of accidents arising out of
and in the course of employment and causing
either death or disablement of workmen.
 It provides for payment by certain classes of
employers to their workmen compensation for
injury by accident.
 Scope of the act
 The act is confined to industries which
are more or less organized.
 That only those workmen whose
occupation is hazardous should be
included.
 Features of the act
 Act provides for cheaper and quicker mode of
disposal of disputes through special proceedings
than possible under Civil Laws.
 Act provides compensation to workmen for injury
caused by accident and occupational disease arising
out of and in the course of employment.
 The act is applicable to apprentices also.
 Procedure for settlement of claim is through
Commissioners.
 Employees not eligible
 Workmen compensation is not payable
› to persons insured under ESI Act, 1948
› if the workmen is under the influence of drugs
or drinks
› if the workmen willfully disobeys instructions or
rules framed or safety guards or other devices
› if total or partial disablement does not exceed 3
days
 Workmen Compensation Act,
1923 vs ESI Act, 1948
WC Act, 1923 ESI Act,1948

1. The WC Act is 1. The act provides

restricted to providing benefits to workmen in
compensation to the case of sickness,
maternity and
workmen for injury
employment injury.
caused to workmen
arising out of and in
the course of
employment.
2. The act offers non 2. The act offers contributory
schemes wherein both the
contributory set up employer and the employee
wherein the employer contribute.
has to pay the entire
compensation. 3. The act provides for 6
benefits namely sickness
benefit, medical benefit,
maternity benefit, disablement
3. The act provides only benefit, death benefit and
disablements benefit and funeral expenses.
dependent’s benefit.
4. The responsibility of 4. The responsibility of
payment lies with the payment lies with ESIC.
employer.
5. Compensation is paid
5. Compensation is a one periodically.
time lump sum cash
payment. 6.Section 19 provides for
rehabilitation and
6. No provision of reemployment of inured
rehabilitation and persons who have been
reemployment under this disabled
act.
 Employer’s liability ( Sec 3)
 The employer of any establishment covered under
this Act, is required to compensate an employee :

 Who has suffered an accident arising out of and in

the course of his employment, resulting into (i)
death, (ii) permanent total disablement, (iii)
permanent partial disablement, or (iv) temporary
disablement whether total or partial, or
Who has contracted an occupational disease
 The employer shall not be
liable
 In respect of any injury which does not result in the total
or partial disablement of the workmen for a period
exceeding three days;

 In respect of any injury not resulting in death, caused by

an accident which is directly attributable to-

 the workmen having been at the time thereof under the

influence or drugs, or

 the willful disobedience of the workman to an order

expressly given, or to a rule expressly framed, for the
purpose of securing the safety of workmen
 Amount of compensation
1. In case of death: an amount equal to 50% of the monthly
wage multiplied by the relevant factor as given in
Schedule IV of the act or Rs. 80,000 whichever is more
2. In case of permanent total disablement, it is 60% or
Rs.90,000 whichever is more
3. In case of permanent partial disablement occurs then the
compensation is proportionate to the disability arrived as
at (2) above
4. Section 19 provides for rehabilitation and reemployment of
inured persons who have been disabled
 Time of payment of
Compensation (Sec 4A)
 In cases, where the employer does not accept the
liability for compensation to the extent claimed, he shall
be bound to make provisional payment payment on the
extent of liability which he accepts & such provisional
payment shall be deposited with the Commissioner or
made to the workman, as the case may be

 Where the employer is in default in paying the

compensation due under this Act within one month of
the date, the commissioner shall direct the employer
(a) To pay simple interest @ 12% p.a. or such higher
rate as specified by Central Government(b) To pay
further sum not exceeding 50% of such amount ( dues
+ interest ) as penalty
 Distribution Of Compensation
(Sec8)
 If injury resulted in death – No payment of
compensation( including to a woman or disable person)
otherwise than by deposit with the Commissioner,
provided that in case of deceased workman, advances
on account of compensation can be made
 Any other sum according to not less than Rs.10 ( as
compensation) may be deposited with the
Commissioner
 The receipt of the Commissioner shall be a sufficient
discharge in respect of deposited compensation
 On the deposit of compensation money, the
Commissioner shall issue notice to be published/served
on each dependent , to appear before him on the date
fixed and the Commissioner after enquiry,shall return
the amount to employer if no dependant exist
 Contracting (Sec 12)
 Normally the principal is not held liable to pay compensation to a
contractor if an injury is caused by an accident to any of the
workers because such workers are not employed by him.
 The principal employer is liable when (Sec12 (1)) :
a) The contractor is engaged to do a work which is part of the trade
or business of the principal employer
b) The workmen were engaged in the course of or for the purpose of
his trade or business
c) The accident occur in or about the premesis on which the principal
employer undertakes to execute the work
 Jurisdiction of Commissioners
(Sec 19)
 If any question arises in any proceedings under this Act as
to the liability of any person to pay compensation
(including any question as to whether a person injured is
or is not a workman) or as to the amount or duration of
compensation (including any question as to the nature or
extent of disablement), the question shall, in default of
agreement, be settled by a Commissioner.
 No Civil Court shall have jurisdiction to settle, decide or
deal with any question which is by or under this Act
required to be settled, decided or dealt with by a
Commissioner or to enforce any liability incurred under
this Act.
 Powers and Duties of
Commissioners
 Deposit & distribution of Compensation
 Powers to require from employers statement
regarding fatal accident
 Power of settlement of disputes
 Power of transfer
 Power to require further deposit in cases of fatal
accident
 Power of Civil Court
 Power to order costs
 Appeals ( Sec 30)
An appeal shall lie to the High Court from the following orders of a
Commissioner, namely :-
(a) an order awarding as compensation a lump sum whether by
way of redemption of a half-monthly payment or otherwise or
disallowing a claim in full or in part for a lump sum

(aa) an order awarding interest or penalty under section 4A

(b) an order refusing to allow redemption of a half-monthly

payment

(c) an order providing for the distribution of compensation among

the dependants of a deceased workman, or disallowing any claim
of a person alleging himself to be such dependant
(d) an order allowing or disallowing any claim for the
amount of an indemnity under the provisions of sub-
section (2) of section 12;
 Case laws
 Sohanbeer Vs workmen’s
compensation commissioner,
Muzaffarnagar & ORS 2007 (Allahabad
high court).

 National Insurance Co. ltd. Vs Mst.

Param Lal Singh, through his father Shri
Santokh Singh, 2007 ( Delhi high court).